Private equity fund managers often struggle with time-consuming and complex deal exit planning, portfolio management, and fee calculations, leading to missed opportunities and financial inefficiencies. Our cloud-based software solution simplifies the entire process, offering a comprehensive suite of tools for deal exit planning, scenario analysis, and seamless integration of new deals into existing portfolios.
Fund managers / general partners (GPs) will benefit from AssetMetrix’s Deal Exit Planner in the following areas:
- Data-driven decision making: Our service provides a complete financial picture by not only modeling cashflows but also predicting management fees and carried interest, offering a comprehensive KPI analysis. This holistic approach enables fund managers to make well-informed data-driven investment decisions, improve investment strategy, and enhance overall fund performance.
- Customizable scenario analysis: The ability to model various scenarios, including exit strategies and fund-level cashflow management, allows fund managers to plan and compare different projections and to assess the potential impact of their choices.
- Capital optimization: Sales proceeds recycling and bridge financing help fund managers to improve their capital utilization and delay capital calls, providing more financial flexibility.
- Compensation fee calculation: The management fee calculator ensures that fund managers have a clear understanding of their fee income over time, assisting in financial planning and budgeting. The distribution waterfall model provides clarity in carried interest prediction and profit sharing.
- Performance transparency: By calculating KPIs at multiple levels, our service empowers fund managers with transparent and granular insights into the performance of individual portfolio companies, the fund at gross level, and the fund net of fees. This transparency aids in identifying top-performing assets and areas that may require attention.
- Enhanced investor reporting: The predictions calculated by our service can be integrated into investor reporting, allowing fund managers to communicate anticipated performance effectively to investors and stakeholders.
- Reduced operational risk: While a state-of-the-art IT implementation and testing framework ensure the correctness of our model calculations, our validation checks protect against faulty user input and ensure that the data entered is accurate and consistent. This significantly reduces the operational risk of a fund manager compared to an Excel-based solution.